NEW DELHI: With the US imposing a massive 50% tariff on Indian products, the affected sectors—primarily textiles, gems & jewellery, and MSMEs—have warned of a possible disruption of critical supply chains, plummeting exports, and thousands of job losses. These sectors have also sought both fiscal and non-fiscal support from the government. However, government officials and industry experts say any support would fall short of offsetting the business losses caused by the high tariffs.On Wednesday, the US imposed an additional 25% tariff over and above the earlier-announced 25% tariff on Indian exports, to penalise India for its continued crude oil imports from Russia. The first 25% tariff took effect on Thursday, while the second levy will kick in on August 27.A senior official from the Apparel Export Promotion Council (AEPC) said businesses might have stayed afloat with 25% tariff by absorbing 10-15% of it through margin cuts. “But with a 50% tariff, doing business with the US has become unviable. Many MSMEs will shut shop,” the official said, warning that lakhs of jobs are at risk.
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